Condo Insurance?

Question

I live in a condominium. The association pays for the structure insurance, but it is my understanding it only covers the exterior walls. If the place burned down, would I be responsible for the interior walls and carpet and such, or would the associations insurance pay for this? I know there are variables such as what caused the fire, so lets just say lightining struck the place. My condo insurance policy only covers my contents and liability, but doesn't mention carpet, interior walls, etc. What do I need to buy to make sure I am covered?

Answer 1

It sounds like you currently have a renters (HO-4) policy, which is essentially only covering personal property (If you turned your house upside down, everything that "falls" out is personal property-wouldn't cover the carpet, cabinets, drywall, etc.). You will need to change your policy from a renters to a condo-owners (HO-6) to cover the part of the structure you are responsible for.
Every condo association covers different parts of the house. Most typically cover the rebuilding of the actual strucutre and the exterior coverings (siding, roofing, windows). Some associations will say you're responsible for the "studs in," where you will need to cover the wiring, plumbing, drywall, cabinets, fixtures, etc. and some will cover the "drywall in," where you cover only what is outside of the drywall. You should carefully read the association agreement to determine, and find out if you're not sure.
The condo-owners policy will have a coverage for the structure, and since you own the condo, you choose how much coverage you would like to have. You should try and figure out the cost of replacing the items as your house stands today, determining the cost of new cabinets, new carpeting of the same grade, new tile, etc. It is difficult to advise how much coverage to carry as we don't know exactly what the association covers, and the items you will need to replace. It adds up very quickly, and you need to take into consideration extra fees for engineers, architects, plumbers, etc. will need to be figured in as well. Depending on how high-end the materials of your home, you should make a break down of what you're responsible for. The square footage should help give you an idea as well. I would think $50,000 worth of coverage A (dwelling) is a low-end amount to carry, and I've written policies over $1 million for high-end condos in NYC. Some insurance companies now offer a calculation tool to help determine a figure on condo policies, so you may want to see if your company offers such a service. You may also want to check with neighbors to compare coverages. It is ultimately your home, and you determine how much coverage you will need. It is not very expensive to carry more coverage, and you can always get quotes on higher amounts even if you decide to take lower coverage. It may be worth it to pay a little more now than be in a position where you're underinsured and pay a lot out of pocket later. There are no programs to help us out if we're underinsured and can't rebuild our homes, so make sure you get the right policy to cover your investment.

Answer 2

You are correct about the HOA insurance covering the exterior structure of your condo. What you need to do is contact your insurance agent and request a quote for condo insurance which will cover two things. One will be the interior walls, floors, cabinets, fixtures, etc. Two will be your actual contents. This type of insurance is relatively cheap. Depending on the size and the replacement cost of your contents, the premium should run somewhere between $75 - $200/year. I recommend contacting whoever you have your car insurance with, as they will probably offer a discount since you are an existing customer.

Answer 3

You need a Condo Unit Owner's policy, often called an HO-6 form policy. It includeds a small amount of building coverage for paint, wallpaper, studs-in coverage that the unit owner is responsible for, along with the built-ins and carpeting.

Check your condo insurance policy, if there isn't any coverage part "A", then you have a TENANT's Policy, not a Condo policy. The standard part A limit is $1,000, but you can raise it.

You also probably want to have $10,000 of "loss assessment" coverage on the policy.

Answer 4

Everyone on here is incorrect! You pay an association fee to pay for the OUTSIDE structure of the building-exterior walls, etc. With a condo policy, it insures the exterior walls in, from your wallpaper to your carpet to your tvs and beds and clothes. you NEED this coverage because if the place burned down, your association dues would pay to have the building rebuilt, but you would have NOTHING to put inside of your home. Call 1800 Allstate, they can get you a quote and answer your questions.

Answer 5

There is no way to answer this truthfully without seeing the actual policies. If I understand what you wrote, both the HOA and yourself have policies: The HOA for the structure and common areas, you for the contents....

If this is correct, contact your agent to discuss the actual limitations on the coverage. If need be, bring your agent a copy of the HOA policy (you should have one) and have him/her look it over. Then the two of you can sit down and figure out what gaps in coverage there are if any.

Answer 6

Actual policies would need to be viewed. You are indeed responsible in most cases for the carpeting, appliances, and all other INTERIOR items including your own personal possessions (the carpet becomes a personal possession whether you like it or not, as fo the appliances). Check with your agent.

Answer 7

Check with the association to find out EXACTLY what is covered. Raise the above question with them. Then, adjust your insurance policy if necessary.

Answer 8

Maybe this will solve your problem, try taking free quotes first then decide for yourself,
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